Sole Agency Estate Agents

eeja

Hi...Advice please :
While a sole agency is running, is one permitted to :
1. Consult other estate agents for alternative valuations .
2. Talk to other estate agents about selling the property after the expiry of the sole agency
3. Line up other potential buyers from other estate agents on the basis that there can be no sale until after the expiry of the sole agency.
Thanks. [Clearly only asking if no mention of the above in the sole agency contract !]

itsakidsworld

Try to think on an ethical line and you will succeed.

Points;

If you call any other agent while your property is on the books of another agent, then they will just ask who you are with now, look at the price the agent has it on with and lower the price. Easy work for the new agent!!!

Wait until the contract expires with the current agent, remove all signs, etc, then wait a week or two and start again. You have then completed all obligations with the original agent and can feel condfident that you have not crossed anyone in the process( a very important lesson in life for us all). Then contact another agent and ask then to call round to offer a free appraisal of your home.

In the meantime, try to check out other agents and obtain as much information as you can about an agent that you think may be good. Behind the scenes work for yourself will create a better result.

Bossyboots

I would have thought the answer to all those was no. Otherwise it is not truly a sole agency. Particularly with number 3, you could find yourself landed with two sets of fees if you find a buyer from another agent before the expiry of your contract with the first one.

You must have a written agreement of what your current agents define as sole agency. Check that out and if you are not sure of any of the terms used, post them here. I am sure thought it must preclude dealing with other agents. Also, make sure it is sole agency and not sole selling rights.

Robert_Sterling

I offerred an Estate Agent a Sole Agency for 5 days if he would charge sole agents fees. I told him that after 5 days I would invite other agents to joinin at sole agents rates. This worked OK. I had three agents on the case.

eeja

'Itsakidsworld' reply : second and third para make good sense and understood. First para not clear : what do you mean new agent will "lower the price" please explain.
Bossyboots of course right : should read the e a contract but if I told you it was not clearly legible...the truth... you would not believe me anyway.. It had in fact been emailed and the pages came out the size of a football pitch so to avoid delay never demanded a hard copy
Robert Sterling's idea : BRILLIANT . Why did I not think of it before !
Any more advice much appreciated.

Jorgan_2

eeja, points one & two are ok but point 3 would probably be in breach of the sole agency contract, depending on how its worded.

courtjester

eeja,

The key here is not whether you are *talking* to other agents or buyers. The commission clauses in a sole agency agreement refer to the point when "... the property is SOLD to a buyer...."

Therefore it is irrelevant that you may be talking to buyers /other agents during the sole agency period - commission only becomes payable at the point of actual sale (which the contract may say is exchange of contracts or date of completion) determined by who introduced the buyer.

HOWEVER, a standard sole agency contract refers to commission becoming due if a property is sold to a buyer either during the period of sole agency...

or

... AFTER the sole agency expires, IF the buyer was introduced BY ANOTHER AGENT during the period of the first sole agency.

So, basically

(1)
you can talk to anyone you like, but don't sign another contract before your existing contract expires and don't agree to have viewings arranged for buyers from another agent before the first contract ends.

(2)
Make sure you declare to any new agent the list of buyers introduced through the earlier sole agency period (who may make an offer later) - the first agent will be entitled to charge you commission on these so they need to be excluded from the later agents contract.

(3)
If you sell PRIVATELY to any buyer during or after any sole agency, you won't have to pay ANY commission to either agent, providing that this buyer has never been introduced by any of the agents.

eeja

EXCELLENT ! Thanks courtjester.
In view of others remarks I waded through the football pitch sized attachment and found one clause that COULD be relevant and ...even possibly result in a change of mind by courtjester. Advice appreciated it anyone believes it alters courtjester's and other's earlier advice :
"ALL ENQUIRIES COVERING THE SALE OF THE PROPERTY SHALL BE CONDUCTED THOUGH ABC ESTATE AGENTS".
So does than block me on the original questions (ie making enquiries myself ) and if it did what could the agent do about it..what would be his loss ?

itsakidsworld

Hi eeja,

The first part of my answer for you related to the fact that you have had your property for sale with an existing agent and it has not sold at that price. So to contact another agent whilst the property is still "live" would allow them to see the price it is for sale for at the moment and then say to you " we would have a better chance if you dropped it to this or this price".

So they get the sole agency easy and it really defeats your objective. My point may be totally incorrect but may very well be logical and so it was posted just to try to make you aware of what could(not will) happen.

Of course there is nothing to stop you speaking to another agent and letting them know that you will not reduce the price but again this would appear slightly defeatist as you are setting the price when they should be.

Hope this cleared things for you

IAKW

eeja

Hi itsakidsworld ! The problem is the exact opposite of what you were thinking. The property was grossly undervalued and thoughts of another EA arose as the current sole EA is not allowing people to view the property and is not putting the right particulars on his website. Hence why I am thinking of changing, once his 'period' is up. Probable reason for his strange behaviour ? He has his own buyer lined up who he wants the property sold to . This buyer (if he exists) entered the scene on the first day the property became available ! OK its a good offer the EA has obtained but unless others are allowed to view how can one be certain there wont be a better one . Also how can one be sure the good offer won't be withdrawn the day before exchange ?

courtjester

eeja wrote:

...the current sole EA is not allowing people to view the property and is not putting the right particulars on his website. Hence why I am thinking of changing, once his 'period' is up.

The agent is *not allowing...* - WHAT!!!! ?? :eek:

Who is in charge here? By definition, an *agent* does what he/she is told to do by the *principal* [you]. The dog should wag the tail, not the other way round.

You need to give your agent some clear *instructions* and they are in breach of their contract with you if they ignore your *instructions*. It makes me thoroughly annoyed to hear when arrogant agents push their clients around - don't let them do this. You are the one paying for their work.

Ask them why they are not 'allowing' viewings and give them 7 days to start doing so, failing which you will consider them in breach of contract and take them off the property.

Contract Clause added to Sole Agency agreement:

eeja wrote:

"ALL ENQUIRIES COVERING THE SALE OF THE PROPERTY SHALL BE CONDUCTED THOUGH ABC ESTATE AGENTS".

This type of clause is usually worded in the form of 'encouraging' clients to ensure that all enquiries come through the agent - normally this has no legal effect and is simply a way of the agent attempting to prevent any other private enquiries (which a standard sole agency agreement does not prohibit).

However, the particular wording quoted by you suggests more of a condition - it depends on the context and where /how this clause appears, but it is suggestive of an attempt to alter the nature of the contract (Sole Agency) to give the agent exclusive selling rights (Sole Selling Rights). These two main types of agents contract are defined at law (Estate Agents Act 1979).

If the contract is titled "Sole Agency", it would be a misrepresentation offence to include conditions that in fact make it something different - you could refer the terms to your local Trading Standards office to see if the agent is using misleading terms.

My basic reading of this clause (without the context of the whole contract) tells me that you could be in difficulty speaking with ANY buyer during the sole agency period, because this clause suggests that it is not a Sole Agency contract, but a Sole Selling Rights contract. If you were (mis) led into thinking otherwise when you signed the agreement, you may have a case with TS - might be worth speaking to them before you go back to the agent, because if TS agree, you will have a basis for complaint against the agent.

The problem with agents contracts is that they are not regulated and often small claims courts (who seem to know or care little about the law) will ignore the Unfair Contract Terms /consumer acts when it comes to estate agents - I don't really understand this but one of the worst professions in the UK seem to get away with anything when it comes to drafting client contracts - the consumer so often is offered no protection at all from dodgy agents terms.

The only protection is either not to sign a written agreement or make absolutely sure you read and thoroughly understand every word before signing - and if appropriate strike out any terms you don't accept and get the agent to agree your revisions in writing (by sending you another amended contract to sign. Just because agents contracts are presented in a standard format doesn't mean you can't change them - you have the right to negotiate the terms as well as the level of the fee.

***********

Postscript

On further reading of this clause, I am tempted by the conclusion that it makes no difference and you are unlikely to have to pay the agent commission if you DON'T forward private enquiries through the agent as *required* by this clause.

This clause is not part of the legal definition of Sole Agency which actions the agent's right to charge commission if contracts are exchanged with a buyer introduced by the agent or by any other agent during the sole agency period. It doesn't give them the right to charge commission if you sell to a private buyer.

Taking it further, what is the consequence of you ignoring the clause and running a private enquiry without referring to the agent? - the condition presumably gives no right of compensation to the agent if you don't comply with it..... so all you face potentially is slapped wrists.

These clauses, certainly when worded more generally, are not fundamental to the contract and a (minor) breach would not give rise to some recompense owed to the agent unless such was spelled out.

When all is said and done, only a court would decide on the facts of each case and unfortunately because the courts are generally so poorly informed when it comes to such disputes, you can't rely upon them to support your rights...